Taj Hotels Resorts May Replace Four Seasonsas Operator of The Pierre-Indian Hotels Company, Which Runs
the Taj Chain, Would InvestUp to $35 million to Renovate the
224 room Luxury Hotel

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Business
Standard Corporate Bureau / New Delhi May 20, 2005 - The Tata-promoted
Indian Hotels Company, which runs the Taj chain of hotels, resorts and
palaces, is set to sign a management contract deal with The Pierre, a super
luxury hotel in New York.

The Tatas are expected to invest $35mn to renovate and refurbish the
hotel.

The deal will mark the re-entry of Taj in the world’s commercial capital
after it sold off the Lexington Hotel a few years ago.

Taj will replace Four Seasons which currently runs the hotel under a
management contract. Though its contract ends in 2012, sources close to
the development said Four Seasons has been looking at exiting the property.

The Pierre has 224 luxury rooms and 74 apartments. But it is making
losses. The Tatas are expected to invest $35 million to renovate and refurbish
the hotel. However, the hotel would be kept open during renovation, the
sources said.

Confirming the development, a Taj spokesperson said: “As New York is
an essential market for luxury hospitality, Taj has been actively pursuing
strategic opportunities there for some time now. In this context, Taj has
entered into exclusive negotiations with the owners and operators of The
Pierre to assume management rights of this property.”

The spokesperson added that Taj was taking a long-term view of this
contract and planned to make The Pierre its flagship property in the US.

However, he said the agreement was subject to regulatory approvals.
The New York deal is a part of the group’s long-term strategy to establish
a presence in the key gateways of the world. The Taj group had earlier
unsuccessfully tried to acquire the Carlyle in New York.

The group already has a presence in the UK in London through a luxury
service apartment called 51 Buckingham Gate. Just a few weeks ago, it also
entered into a management contract deal with Rebak Island Marina Berhad
to run a resort hotel in Lankavi in Malaysia.

Earlier it also tied up with Eta Star property to develop and manage
a resort and spa in Dubai.

The
Indian Hotels Company and its subsidiaries are collectively known as Taj
Hotels Resorts and Palaces and are recognised as one of South Asia's largest
and finest hotel company. Taj Hotels Resorts and Palaces comprises 56 hotels
in 37 locations across India with an additional 13 international hotels
in the Maldives, Mauritius, UK, Nepal, Sri Lanka, Africa and the Middle
East.